If a home appraises at 145,000 can you get a refinance for 132,000?

Short answer is sure, given adequate credit and debt to income ratios. There are a variety of options for folks without 20% equity to refinance, depending on what type of loan you currently have, when it was taken out, and your credit/assets/income. Glad to discuss your particular scenario if you’d like more info. Thanks! Ted

You are looking at an equity position of almost 9%. That will not allow you to get the best loan terms available, but there are plenty of finance options available. FHA loans only require an equity contribution of 3.5%. HomePath loans also have a low equity requirement. Personally, if you are refinancing a Fannie-Mae loan, HomePath is a much better loan package than FHA.

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